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8 Sep 2014
ECB's Lautenschlaeger: More than one Governing Council member against ABS purchases
FXStreet (Łódź) - European Central Bank executive board member Sabine Lautenschlaeger revealed on Monday in an interview that the introduction of ABS purchases at the monetary policy meeting last week was met with opposition from more than one of the Governing Council members.
Also more than one member voted for more extensive measures than those finally announced, she said. She also added that she didn't perceive the ABS market as too small and that in case of mezzanine bond tranche purchases state guarantees would be necessary.
"You have to wonder if there’s not a bit of desperation creeping in from some board members," Ryan Littlestone comments, pointing out that usually Mario Draghi manages to project "a scene of agreement and understanding from ECB announcement meetings."
Furthermore, Sabine Lautenschlaeger emphasized that the effectiveness of monetary policy issupported by the Eurozone banking union, which allows the ECB to concentrate on maintaining price stability in the area.
Also more than one member voted for more extensive measures than those finally announced, she said. She also added that she didn't perceive the ABS market as too small and that in case of mezzanine bond tranche purchases state guarantees would be necessary.
"You have to wonder if there’s not a bit of desperation creeping in from some board members," Ryan Littlestone comments, pointing out that usually Mario Draghi manages to project "a scene of agreement and understanding from ECB announcement meetings."
Furthermore, Sabine Lautenschlaeger emphasized that the effectiveness of monetary policy issupported by the Eurozone banking union, which allows the ECB to concentrate on maintaining price stability in the area.